Assa Abloy: shares lose ground after results
The Swedish group reported this morning that sales were up 9% for the first three months of the year, but this performance was essentially due to the favorable effect of its acquisitions (+11%), which more than offset a 2% organic decline in activity.
The company claims to have suffered from a lower number of working days in March, the most important month of the quarter, due to the Easter vacations, but also to the persistent weakness of the residential construction market.
Sales in Asia-Pacific fell by 3% in organic terms over the quarter, due to difficulties in the Chinese property market.
Its operating profit (Ebit) rose by 5% to SEK 5.4 billion, but its operating margin nonetheless fell to 15.4%, compared with 16% a year earlier.
Following this publication, Assa Abloy shares lost 2% on Wednesday morning, among the worst performers on the OMXS30 index, which shed 0.4% at the same time.
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